LETTER 


FROM 

THE  SECRETARY  OF  THE  TREASURY, 

IN 

ANSWER  TO  A  LETTER 

OF 

THE  CHAIRMAN  OF  THE  COMMITTEE 

or 

WAYS  AND  MEANS, 

REQUESTING  - 

INFORMATION  AS  TO  THE  MOST  ELIGIBLE  METHOD 

OF 

OBTAINING  LOANS. 


March  21st?  1810. 

printed  by  order  of  the  House  of  Representatives , 

WASHINGTON  CITY; 

PRINTED  BY  R.  C.  WEIGHTMAN 


1810, 


LETTERS. 


January  8th ,  1810, 

SIR, 

HAVING  stated  in  your  several  reports 
that  loans  would  constitute  the  principal  resource 
of  the  United  States  for  defraying  extraordinary 
expenses,  the  committee  of  ways  and  means 
have  instructed  me  to  request,  that  you  will  re¬ 
port  your  opinion  as  to  the  most  eligible  mode  of 
obtaining  money  by  loan — keeping  in  view  both 
the  facility  of  borrowing  sums  commensurate  with 
the  exigencies  of  the  United  States,  and  the  ulti¬ 
mate  extinguishment  of  the  debt  contracted. 

Y ou  have  already  given  your  opinion  in  favor 
of  an  increase  of  duties  on  importation.  To  what 
extent  can  this  be  carried  with  safety  ?  Can  any 
other  resources  except  taxes  and  loans  be  relied  on 
for  immediate  revenue  ? 

I  have  the  honor  to  be, 

With  respect, 

Y our  most  obedient, 

JOHN  W.  EPPES, 

Albert  Gallatin ,  esq. 

Secretary  of  the  Treasury. 


4 


TREASURY  DEPARTMENT, 

February  26th,  18 1®. 

SIR, 

I  HAVE  the  honor  to  submit  the  following 
observations  in  answer  to  the  several  objects  of 
inquiry  embraced  by  your  letter  of  the  8th  ultimo. 
The  amount  of  extraordinary  expenses  which, 
may  be  authorised  by  Congress  being  yet  unas¬ 
certained,  it  is  not  even  at  this  time  practicable 
to  state  with  precision,  the  sum  which  maybe 
wanted  on  loan  for  the  service  of  this  year.  And 
in  relation  to  ensuing  years,  it  would  be  prema¬ 
ture  to  lay  down  any  general  rules  respecting  the 
most  eligible  mode  of  borrowing  sums  of  money, 
commensurate  with  the  exigencies  of  the  United 
States  in  case  of  war.  It  is  therefore  thought  suf 
ficient  for  the  present  to  point  out  some  of  the 
most  obvious  means  of  effecting  loans  generally  ; 
leaving  it  a  subject  of  subsequent  consideration  to 
decide  according  to  existing  circumstances  on  the 
most  eligible  mode,  and  on  the  arrangement  of 
details. 

The  inquiries  of  the  committee  of  ways  and  means 
apply  to  the  three  following  points  :  1st.  What  is 
the  most  eligible  mode  of  obtaining  money  by 
loan  ?  keeping  in  view  both  the  facility  of  bor¬ 
rowing  sums  commensurate  with  the  exigencies 
of  the°JTnited  States,  and  the  ultimate  extinguish¬ 
ment  of  the  debt  contracted.  2dly.  To  what  ex¬ 
tent  can  an  increase  of  duties  on  importation  be 
earned  with  safety  ?  3dly.  Can  any  other  re¬ 
sources  besides  taxes  and  loans  be  relied  on  for 
immediate  revenue  ? 

LOANS. 

1st.  The  commissioners  of  the  sinking  fund  wilj, 


out  of  the  annual  appropriation  of  eight  millions 
of  dollars  for  the  payment  of  the  debt,  reimburse 
in  1810,  the  residue  of  the  exchanged  six  per  cent, 
stock,  amounting  to  3,750,000  dollars,  and  in  1811, 
the  whole  of  the  converted  six  per  cent,  stock, 
amounting  to  1,860,000  dollars.  It  is  probable 
that  the  owners  of  those  two  species  of  stock 
would  consent  to  reloan  the  amount,  provided  it 
iv as  made  irredeemable  for  a  few  years. 

2dly.  It  has  already  been  stated  in  the  annual 
report  of  November  5th,  1807,  referred  to  in  that 
of  this  year,  “  that  the  several  banks  of  the  Uni¬ 
ted  States  might  find  it  convenient,  as  the  dimi¬ 
nished  commerce  of  the  country  might  require  less 
capital,  to  loan  to  government  a  considerable  por¬ 
tion  of  their  capital  stock,  then  computed  at  about 
forty  millions  of  dollars.”  Such  temporary  loans 
can  be  obtained  only  to  a  limited  amount;  but 
they  are  convenient  in  two  respects  :  1st.  They  do 
not  diminish  the  facility  of  obtaining  other  loans 
from  individuals,  inasmuch  as  they  do  not  in¬ 
crease  the  amount  of  stock  at  market  :  2dly.  Be¬ 
ing  redeemable  at  will,  and  in  any  sums  wdiich 
may  suit  the  convenience  of  government,  interest 
is  paid  onlyas  long  as  the  money  is  wanted  ;  and 
the  extinguishment  of  the  debt  contracted  is  ren¬ 
dered  more  easy  and  certain. 

3d.  Loans  may  be  obtained  from  individuals  to 
an  extent  commensurate  with  the  national  capital, 
and  limited  by  the  existing  demand  for  that  capi¬ 
tal  for  private  purposes.  The  terms  must  vary 
according  to  circumstances,  always  giving  the  pre¬ 
ference  to  the  most  simple  form  that  can  effect  the 
object  A  portion  of  the  public  lands  may  per¬ 
haps,  if  necessary,  either  as  a  premium  or  by  giv¬ 
ing  an  option  to  subscribers,  be  advantageously  ap¬ 
plied  in  facilitating  loans  or  improving  their  terms. 


4th.  Treasury  notes,  bearing  interest  and  paya¬ 
ble  to  order,  one  year  after  date,  may  be  annually 
issued  to  a  moderate  amount,  and  be  put  in  circu¬ 
lation  both  through  the  medium  of  banks,  and  in 
payment  of  supplies.  A  portion  would  be  absorb¬ 
ed  during  the  year  by  the  payment  of  public  lands 
and  revenue  bonds,  and  the  redemption  of  the  resi¬ 
due  be  provided  for  by  the  loan  of  the  ensuing 
year.  This  annual  anticipation  of  the  revenue, 
though  liable  to  abuse,  may,  if  kept  within  strict 
bounds,  facilitate  both  the  collection  of  the  revenue 
and  the  loans  themselves. 

In  relation  to  the  extinguishment  of  the  debt 
contracted,  those  who  borrow  can  do  nothing 
more  than  to  provide  and  pledge  funds  sufficient 
for  that  object,  and  to  give  such  a  form  to  the 
debt  as  may  not  impede  its  redemption.  To  ren¬ 
der  it  irredeemable  for  no  longer  time  than  is  ne¬ 
cessary  in  order  to  obtain  the  money  ;  to  make  it 
reimbursable  by  instalments  at  fixed  periods;  never 
to  create  for  the  sake  of  diminishing  the  annual 
interest,  a  greater  nominal  amount  of  stock  than 
the  sum  actually  borrowed;  and  above  all  never  to 
incur  expenses  which  are  not  actually  necessary 
for  the  defence  or  welfare  of  the  country,  are  prin¬ 
ciples  essential  for  a  nation  which  does  not  con¬ 
template  a  system  of  perpetual  and  increasing  debt* 
But  for  its  actual  reimbursement  we  must  princi¬ 
pally  depend  on  the  return  of  prosperous  circum¬ 
stances,  on  the  growing  resources  of  the  country, 
and  on  the  wisdom  of  our  successors.  The  arti- 
artificial  provisions  of  a  sinking  fund  may  always 
be  rendered  inefficient  by  the  necessities  or  extra¬ 
vagance  of  government.  The  real  amount  of  a 
national  debt  cannot  be  diminished  unless  the  ag¬ 
gregate  of  revenue,  including  the  funds  assigned  to 
the  sinking  fund,  and  exclusively  of  new  loans,  ex* 


7 


cceds  the  aggregate  of  expenditures,  other  than 
those  for  the  payment  of  the  principal  of  the  debt. 
Favorable  circumstances,  and  a  rigid  economy  in 
the  current  expenses  have  enabled  the  United 
States  to  reimburse  during  the  last  eight  years,  one 
half  of  the  debt  created  by  the  revolutionary  war, 
and  during  some  of  the  ensuing  years.  Similar 
circumstances,  and  an  adherence  to  the  same  prin¬ 
ciples  will  be  requisite  to  secure  the  actual  reim 
bursement  of  the  debt  which  it  may  now  be  ne¬ 
cessary  to  contract.  But  that  government  will 
possess  resources  amply  sufficient  for  that  object, 
cannot  be  doubted.  The  proceeds  of  the  public 
lands  would  alone,  slowly  perhaps  but  certainly, 
extinguish  a  much  greater  debt  than  the  United 
States  have  it  now  in  their  power  to  create.  And 
it  is  sufficiently  ascertained  that  the  national  wealth 
of  t ;,e  United  States,  and  therefore  the  means  of 
raising  revenue,  increase  in  a  ratio  still  more  rapid 
than  their  population,  a  population  which  almost 
doubles  every  twenty  years. 

Those  considerations,  connected  with  others 
Stated  at  large  in  the  annual  reports  of  November 
1807  and  December  1808,  have  produced  a  con¬ 
viction  that  loans  might  without  danger  be  resort¬ 
ed  to  as  the  principal  resource  for  supporting  a 
war.  Permit  me  at  the  same  time  to  observe, 
that  the  suggestion  has  been  confined  to  that  ob¬ 
ject  alone,  and  that  excepting  the  case  of  war, 
either  immediate  or  contemplated,  it  appears  con¬ 
sistent  with  sound  policy  to  raise  during  the  year 
the  means  of  defraying  all  the  national  expenses, 
borrowing  no  larger  sum  than  the  amount  of  prin 
cipal  of  old  debt  paid  during  the  year.  The  pro 
priety  of  providing,  even  in  time  of  war,  a  reve¬ 
nue  equal  to  the  annual  expenses  on  a  peace  estab¬ 
lishment,  the  interest  of  the  existing  debt,  and  that 


f. 


& 

on  the  loans  which  may  be  raised,  has  also  been 
suggested  in  former  reports. 

INCREASE  OF  DUTIES. 

On  that  subject,  but  little  can  be  added  to  the 
opinions  expressed  on  former  occasions.  I  still 
think  that  this  source  of  revenue  is  in  the  United 
States  and  at  this  time  the  most  productive,  the 
easiest  to  collect,  the  least  burthensome  to  the 
great  mass  of  the  people  ;  and  that  the  duties  on 
importation  generally  may,  in  case  of  war,  be 
doubled  without  inconvenience  or  danger. 

In  time  of  peace,  and  particularly  under  exist¬ 
ing  circumstances,  habits  of  smuggling  might  be 
promoted  by  so  great  an  increase.  But  the  pre¬ 
cise  rate  which  may  with  safety  be  adopted  can 
only  be  a  matter  of  opinion  to  be  tested  by  expe¬ 
rience.  I  would  not  hesitate  however  to  mention 
an  additional  duty  of  five  per  cent,  on  merchandise 
paying  ad  valorem  duties,  and  an  increase  of  33£ 
per  cent,  on  the  existing  duties  on  all  other  articles, 
as  attended  with  very  little  danger,  and  preferable 
to  any  other  new  source  of  taxation.  A  renewal 
of  the  duty  on  salt  which  produced  six  hundred 
thousand  dollars  a  year,  may  be  exceptionable  in 
other  respects,  but  on  account  of  the  bulk  of  the 
article,  is  liable  to  no  objection  in  the  present  view 
of  the  subject. 

It  was  stated  in  the  annual  report  of  December 
last,  that  an  increase  of  duties  would  not,  on  ac¬ 
count  of  the  terms  of  credit  allowed  for  the  pay¬ 
ment  of  duties,  supersede  The  necessity  of  a  loan 
for  the  service  of  this  year.  The  amount  of  thgt 
loan  might  of  course  be  diminished,  if  no  credit,  , 
or  a  credit  of  only  sixty  days  was  allowed  for  the 
payment  of  the  proposed  additional  duties. 


9 


PUBLIC  LANDS. 

These  constitute  the  only  great  national  re¬ 
source  exclusively  of  loans  and  taxes.  They  have 
already  been  mentioned  as  forming  a  fund  for  the 
ultimate  extinguishment  of  the  public  debt ;  and 
the  possibility  of  their  being  used  as  a  means  of 
facilitating  loans,  has  been  suggested.  A  portion 
might  also  be  usefully  applied  as  a  bounty  to  of¬ 
ficers  and  soldiers  whenever  it  may  become  neces¬ 
sary  to  raise  a  considerable  force.  But  as  an  ob¬ 
ject  of  immediate  revenue,  I  much  doubt  whether 
this  can  be  materially  increased  without  a  radical 
change  in  the  present  system. 

Not  less  than  ten  land  offices  are  now  in  full 
operation,  offering  a  great  choice  of  good  lands, 
situated  in  various  climates,  and  suited  to  the  ha¬ 
bits  of  the  citizens  of  every  portion  of  the  Union. 
They  are  sold  at  the  rate  of  two  dollars  an  acre, 
or  rather  at  one  dollar  and  sixty  four  cents,  if  paid 
for  at  the  time  of  purchase,  and  in  tracts  of  one 
hundred  and  sixty  acres.  As  much  is  sold  as 
there  is  actual  demand  for  land  in  similar  situa¬ 
tions  at  that  price.  The  sales  are  however  almost 
exclusively  confined  to  those  who  are  or  intend  to 
become  actual  settlers,  and  all  the  money  which 
can  be  raised  by  that  description  of  purchasers,  is 
annually  paid  to  the  United  States.  In  order  to 
increase  immediately  the  amount  of  sales,  a  diffe¬ 
rent  capital  from  that  which  has  heretofore  been 
applied  to  that  object,  the  capital  of  persons  who 
will  purchase  for  the  purpose  of  selling  again  with 
a  profit  must  be  brought  into  action.  But  it  is 
evident  that  no  person  will  purchase  lands  at  the 
present  price  as  an  object  of  speculation,  whilst  the 
United  States  continue  to  sell  at  the  same  price 
in  small  tracts.  To  effect  the  proposed  object,  it 

% 


10 


would  be  necessary  not  only  to  reduce  the  price, 
but  to  make  a  difference  between  that  of  lands  sold 
in  large  tracts,  and  that  asked  for  small  tracts,  suf 
ficientto  encourage  purchases  on  an  extensive  scale. 
That  alteration  might  produce  an  additional  re¬ 
venue,  but  appears  to  me  extremely  injurious  in 
other  respects.  The  present  system  of  sales  has 
been  tried,  and  answers  the  expectations  of  the 
legislature.  A  gradual  increase  must,  notwith¬ 
standing  some  temporary  fluctuations,  necessarily 
take  place.  On  that  I  would  rely ;  nor  would  I 
venture  to  suggest  any  other  change  than  that  al¬ 
ready  proposed  on  a  former  occasion,  a  moderate 
and  general  reduction  of  prices,  discontinuing  at 
the  same  time,  all  sales  on  credit,  but  continuing 
to  sell  at  the  same  rate  large  or  small  tracts  of 
land. 

I  have  the  honor  to  be, 

Very  respectfully, 

Sir, 

Y our  obedient  servant, 

ALBERT  GALLATIN 

Hon.  John  TV.  Eppes , 

Chairman  of  the  Committee  of 
TV ays  and  Means. 


Extract  from  the  Annual  Report  of  the  Secretary  of 
the  Treasury ,  dated  November  &h,  1807. 

w  It  will  be  sufficient  to  state — 1st.  That  it 
appears  necessary  to  provide  a  revenue  at  least  equal 
to  the  annual  expenses  on  a  peace  establishment, 
the  interest  of  the  existing  debt,  and  the  interest  on 


11 


the  loans  which  may  be  raised.  2d — That  those 
expenses,  together  with  the  interest  of  the  debt, 
will,  after  the  year  1808,  amount  to  a  sum  less 
than  seven  millions  of  dollars,  and  therefore  that  if 
the  present  revenue  of  fourteen  millions,  five  hun¬ 
dred  thousand  dollars,  shall  not  be  diminished  more 
than  one  half  by  a  war,  it  will  still  be  adequate  to 
that  object,  leaving  only  the  interest  of  war  loans 
to  be  provided  for. 

Whether  taxes  should  be  raised  to  a  greater  a- 
mount,  or  loans  be  altogether  relied  on,  for  defray¬ 
ing  the  expenses  of  a  war,  is  the  next  subject  of 
consideration. 

Taxes  are  paid  by  the  great  mass  of  the  citizens, 
and  immediately  affect  almost  every  individual  of 
the  community;  loans  are  supplied  by  capitals  pre¬ 
viously  accumulated  by  a  few  individuals.  In  a 
country  where  the  resources  of  individuals  are  not 
generally  and  materially  affected  by  the  war,  it  is 
practicable  and  wise  to  raise  by  taxes  the  greater 
part  at  least  of  the  annual  supplies.  The  credit  of 
a  nation  may  also,  from  various  circumstances,  be, 
at  times,  so  far  impaired,  as  to  leave  no  resource 
but  taxation.  In  both  respects,  the  situation  of  the 
United  States  is  totally  dissimilar. 

A  maritime  war  will,  in  the  United  States,  gene¬ 
rally  and  deeply  affect,  whilst  it  continues,  the  re¬ 
sources  of  individuals ;  as  not  only  commercial  pro¬ 
fits  will  be  curtailed,  but  principally  because  a 
great  portion  of  the  surplus  of  agricultural  produce, 
necessarily  requires  a  foreign  market.  The  reduc¬ 
ed  price  of  the  principal  articles  exported  from  the 
United  States,  will  operate  more  heavily  than  any 
contemplated  tax.  And  without  inquiring  whether 
a  similar  cause  may  not  still  more  deeply  and  per¬ 
manently  aifect  a  nation  at  war  with  the  United 
States,  it  seems  to  follow,  that  so  far  as  relates  to 
America,  the  losses  and  privations  caused  by  the 


12 


wni\  should  not  be  aggravated  by  taxes,  beyond 
what  is  strictly  necessary.  An  addition  to  the  debt 
is  doubtless  an  evil,  but  experience  having  now 
shewn,  with  what  rapid  progress  the  revenue  of  the 
Union  increases  in  time  of  peace,  with  what  facility 
the  debt  formerly  contracted,  has,  in  a  few  years, 
been  reduced,  a  hope  may  confidently  be  enter¬ 
tained  that  all  the  evils  of  the  war  will  be  tempo¬ 
rary,  and  easily  repaired ;  and  that  the  return  of 
peace  will,  without  any  effort,  afford  ample  re¬ 
sources  for  reimbursing  whatever  may  have  been 
borrowed  during  the  war. 

The  credit  of  the  United  States  is  also  unimpair¬ 
ed,  either  at  home  or  abroad ;  and  it  is  believed 
that  loans  to  a  reasonable  amount  may  be  obtain¬ 
ed  on  eligible  terms.  Measures  have  been  taken  to 
ascertain  to  what  extent  this  may  be  effected  a- 
broad.  And  it  will  be  sufficient  here  to  suggest, 
that  the  several  banks  of  the  United  States  may 
find  it  convenient,  after  the  ensuing  year,  and  as 
the  diminished  commerce  of  the  country  may  re 
quire  less  capital,  to  loan  to  government  a  conside¬ 
rable  portion  of  their  capital  stock,  now  computed 
at  above  forty  millions  of  dollars. 

It  might  be  premature  to  enter  into  a  particular 
detail  of  the  several  branches  of  revived,  which 
may  be  selected  in  order  to  provide  for  the  interest 
of  war  loans,  and  to  cover  deficiencies  in  case  the 
existing  revenue  should  fall  below  seven  millions  of 
dollars.  A  general  enumeration  seems  at  present 
sufficient. 

1.  Not  only  the  duty  on  salt  and  the  Mediterra¬ 
nean  duties  may  be  immediately  revived,  but  the 
duties  on  importations  generally  may,  in  case  of 
war,  be  considerably  increased,  perhaps  doubled, 
with  less  inconvenience  than  would  arise  from  any 
other  mode  of  taxation.  Without  resorting  to  the 
example  ol  other  nations,  experience  has  proven 


13 


that  this  source  of  revenue  is,  in  the  United  States* 
the  most  productive,  the  easiest  to  collect,  arid  the 
least  burthensome  to  the  great  mass  of  the  people. 
In  time  of  war,  the  danger  of  smuggling  is  diminish* 
ed;  the  scarcity  of  foreign  articles  prevents  the  dm 
ty  ever  falling  on  the  importer ;  the  consumers  are 
precisely  those  members  of  the  community  who 
are  best  able  to  pay  the  duty  ;  and  the  increase  of 
domestic  manufactures,  which  may  be  indirectly 
effected,  is  in  itself  a  desirable  object. 

2.  Indirect  taxes,  however  ineligible,  will  doubt¬ 
less  be  cheerfully  paid  as  war  taxes,  if  necessary. — 
Several  modifications  of  the  system  formerly  adopt¬ 
ed  might  however  be  introduced,  both  in  order  to 
diminish  some  of  the  inconveniencies  which  were 
experienced,  and  particularly  to  insure  the  collec¬ 
tion  of  the  duties. 

3.  Direct  taxes  are  liable  to  a  particular  objecr 
tion,  arising  from  th e  unavoidable  inequality  pro¬ 
duced  by  the  general  rule  of  the  constitution.— 
Whatever  difference  may  exist  between  the  relative 
wealth,  and  consequent  ability  of  paying,  of  the  se¬ 
veral  states,  still  the  tax  must  necessarily  be  raised 
in  proportion  to  their  relative  population.  Should 
it  however  become  necessary  to  resort  to  that  re¬ 
source,  it  is  believed  that  a  tax  raised  upon  that 
species  of  property  in  each  state,  which  by  the  state 
laws,  is  liable  to  taxation,  as  had  originally  been 
contemplated  by  Congress,  would  be  preferable  to 
a  general  assessment,  laid  uniformly  on  the  same 
species  of  property  in  all  the  states,  as  was  ultimate¬ 
ly  adopted.” 

Extract  of  the  Annual  Report  of  the  Secretary  of  the 
Treasury ,  of  December  10 th,  1808. 

IT  is  certainly  only  with  a  view  to  war,  either 
immediate  or  contemplated,  that  it  will  become  n'e- 


u 


cessary  to  resort,  at  least  to  any  considerable  ex¬ 
tent,  to  extraordinary  sources  of  supply. 

Legitimate  resources  can  be  derived  only  from 
loans  or  taxes ;  and  the  reasons  which  induce  a  be¬ 
lief  that  loans  should  be  principally  relied  on,  in 
case  of  war,  were  stated  in  the  annual  report  of 
last  year.  That  opinion  has  been  corroborated  by 
every  subsequent  view  which  has  been  taken  of 
the  subject,  as  well  as  by  the  present  situation  of 
the  country.  The  embargo  has  brought  into,  and 
kept  in  the  United  States  almost  all  the  floating 
property  of  the  nation.  And  whilst  the  deprecia¬ 
ted  value  of  domestic  products  increases  the  diffi¬ 
culty  of  raising  a  considerable  revenue  by  internal 
taxes,  at  no  former  time  has  there  been  so  much 
specie,  so  much  redundant  unemployed  capital  in 
the  country  "The  high  price  of  public  stocks,  and 
indeed  of  all  species  of  stocks,  the  reduction  of  the 
public  debt,  the  unimpaired  credit  of  the  general 
government,  and  the  large  amount  of  existing  bank 
stock  in  the  United  States,  leave  no  doubt  of  the 
practicability  of  obtaining  the  necessary  loans  on 
reasonable  terms. 

The  geographical  situation  of  the  United  States, 
their  history  since  the  revolution,  and  above  all, 
present  events,  remove  every  apprehension  of  fre¬ 
quent  wars.  It  may  therefore  be  confidently  ex. 
pected,  that  a  revenue  derived  solely  from  duties 
on  importations,  though  necessarily  impaired  by 
war,  will  always  be  amply  sufficient,  during  long 
intervals  of  peace,  not  only  to  defray  current  ex¬ 
penses,  but  also  to  reimburse  the  debt  contracted 
during  the  few  periods  of  war. 

.  No  internal  taxes,  either  direct  or  indirect,  are 
therefore  contemplated,  even  in  the  case  of  hostili¬ 
ties  earned  on  against  the  two  great  belligerent 
powers.  Exclusively  of  the  authority  which  must, 


15 


from  time  to  time,  be  given  to  borrow  the  sums  re¬ 
quired,  (always  providing  for  the  reimbursement  of 
such  loans  within  limited  periods,)  and  of  a  due 
economy  in  the  several  branches  of  expenditure, 
nothing  more  appears  necessary  than  such  modifi¬ 
cations,  and  increase  of  the  duties  on  importations, 
as  are  naturally  suggested  by  existing  circumstan¬ 
ces. 

Although  importations  have  already  considera¬ 
bly  diminished,  and  may  under  the  system  now  in 
force,  shortly  be  altogether  discontinued,  no  rea¬ 
sonable  objection  is  perceived  against  an  increase 
of  duties  on  such  as  may  still  take  place. 

Had  the  duties  been  double  on  the  1st  of  Janua¬ 
ry,  1808,  as  was  then  suggested  in  case  of  war,  the 
receipts  into  the  treasury  during  that  and  the  ensu¬ 
ing  year,  would  have  been  increased  nine  or  ten 
millions  of  dollars.  Those  articles  of  universal  con¬ 
sumption,  on  which  an  increase  of  duty  would  be 
inconvenient,  are  generally  either  free  of  duty  or 
abundant.  It  is  therefore  proposed  that  not  only 
the  Mediterranean  duties,  which  will  expire  on  the 
1st  day  of  January  next,  should  be  continued,  but 
that  all  the  existing  duties  should  be  doubled  on 
importations  subsequent  to  that  day. 


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